21. Which of the following is usually included as an inventory holding cost?

Order placing

Quantity discounts

Breakage

Typing up an order

22. Which production process term best describes the situation when activities in a stage of production must stop because there is no work?

Blocking

Starving

Staging

Buffering

23. In a Gantt chart the vertical axis represents which of the following?

Time

Revenue

Tasks

Cost

24. The Shingo system states that the way to prevent defects from coming out at the end of a process is to do which of the following:

Redesign the process in order to mitigate the bottlenecks.

Utilize SQC (statistical quality control).

Introduce controls within the process.

Slow down production rates until the process is in control.

25. Which of the following terms describes the time a unit spends actually being worked on together with the time spent waiting in a queue?

Flow time

Build time

Cycle time

Run time

26. Which of the following is one of Dr. Eli Goldratt's rules of production scheduling for optimized production technology?

An hour saved at a bottleneck operation does not increase the process flow.

If you lose an hour at a bottleneck it is better than making scrap.

Do not allow bottlenecks to govern the flow of the line.

Utilization and activation of a resource are not the same.

27. During the implementation of a project, which of the following should be the primary focus of a consulting firm?

The correct project software

Application of the learning curve theory

Tools and materials availability

People management skills

28. Which of the following is an analytical tool used in Six-Sigma quality improvement programs?

Gantt charts

Pareto charts

Tree charts

Pedigree charts

29. A project manager must consider several components when overseeing the planning process of aggregate operations; specifically, whether such components are factors that are internal or external to the organization. Which of the following factors would be classified as an internal component for an organization?

Inventory levels and economic conditions

Market demand and subcontractor capacity

Current physical capacity and current workforce

Competitor behavior and current workforce

30. Which of the following is the net requirement using an MRP program if the gross requirement is 10,000 and the inventory on hand is 4,000?